Question 1

What are real-time wholesale (RTW) prices?

Accepted Answer

These are the real-time wholesale prices that energy retailers pay for electricity in Texas. Some retailers also pay customers these same prices for excess solar energy exported to the grid. This is the actual market price of electricity before retail markups.

Question 2

Why are RTW prices lower than retail rates?

Accepted Answer

RTW prices are lower because retailers must protect against price risk. Wholesale prices can spike to $5,000 per MWh ($5/kWh) during grid emergencies. Retailers charge higher fixed rates to cover this risk, plus their operating costs and profits.

Question 3

How do I know which energy zone I'm in?

Accepted Answer

North Zone: Dallas/Fort Worth metro area. Houston Zone: Houston metro area. South Zone: Austin, San Antonio, and surrounding areas. West Zone: Lubbock, San Angelo, and western Texas. Choose the zone closest to your location.

Question 4

What's considered a high or low RTW price?

Accepted Answer

RTW prices typically range from negative to $5/kWh. Negative prices: You may pay to export (rare, usually overnight with high wind). Low prices: 0-3¢/kWh (minimal solar earnings). Average prices: 3-8¢/kWh (typical daily range). High prices: 8-20¢/kWh (good solar export earnings). Emergency pricing: 20¢-$5/kWh (maximum solar earnings). Extreme spikes above $1/kWh occur during grid emergencies but create the highest solar returns.

Question 5

How often do prices update?

Accepted Answer

Prices are settled on 15-minute intervals. Tomorrow's forecast is published by ERCOT around 12:30 PM CT each day.

Question 6

How does this affect my solar earnings?

Accepted Answer

If you're on an RTW solar buyback plan, you earn these wholesale prices for excess solar energy you export. Higher prices = higher earnings. Your import rates (what you pay) remain fixed, so this only affects how much you earn from solar exports.

Question 7

What causes wholesale price changes?

Accepted Answer

Prices change based on supply and demand. High demand (hot summer days, cold winter mornings) increases prices. Low demand (mild weather, low usage periods) decreases prices. Power plant outages, transmission constraints, and extreme weather can cause major price spikes.

Texas Wholesale Energy Prices

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